Supreme Court of the State of New York Appellate Division Unanimously Reversed the Supreme Court’s New York County Summary Judgment Ruling and Dismissed Every Contested Claim Against Compass Lexecon’s Client – ACP Re

In this case, Quinn Emanuel Urquhart & Sullivan, LLP retained Compass Lexecon’s Senior Consultant Professor Allen Ferrell to opine, among other things, on the principal cause of Tower Group International, Ltd.’s (“TGIL”) inability to pay the at-issue Trust Preferred Securities (“TruPS”) from the closing date of the transaction between ACP Re and Tower Group through the end of 2016. As cited in the New York Appellate Decision, Professor Ferrell opined that “ ‘[t]he primary, if not only, reason why the TruPS were not ultimately paid in full is because TGIL and its subsidiaries experienced extensive unforeseen adverse development in 2014 through 2016 on policies issued in 2013 and prior years . . . . This development . . . arose entirely from insurance policies issued by TGIL’s insurance operating subsidiaries in 2013 and earlier.’ Plaintiffs failed to submit expert reports disputing these opinions . . . Accordingly, defendants’ motion for summary judgment dismissing the alter ego cause of action should have been granted.”

Professor Ferrell was supported by a Compass Lexecon team that included Adel Turki, Clifford Ang, and Laura Yergesheva.

Compass Lexecon worked closely with attorneys at Quinn Emanuel, including Isaac Nesser and Toby Futter, who successfully represented ACP Re Ltd., CastlePoint Bermuda Holding, Ltd., CastlePoint Management Corp., Preserver Group, Inc., Tower Group, Inc., and Tower Group International, Ltd.